Thailand’s Central Group has made a significant move in the global luxury retail landscape with its acquisition of the iconic KaDeWe property in central Berlin from the Austrian company Signa, which recently faced insolvency.
In a statement released on Friday, Central Group expressed its optimism about further negotiations to secure ownership of the entire KaDeWe Group, encompassing prestigious stores like Alsterhaus in Hamburg and Oberpollinger in Munich. Already holding a 50.1% majority stake in the group, Central Group sees this acquisition as a pivotal step towards its goal.
Vittorio Radice, a board member of Central Group Europe, emphasized the strategic importance of acquiring the KaDeWe building as the initial milestone in revitalizing and restructuring the KaDeWe Group. This endeavor aims to establish a sustainable and financially sound business model for the renowned luxury department store chain.
Signa Prime, the entity holding shares in KaDeWe luxury department stores, refrained from commenting on the transaction. The purchase price for the KaDeWe building, a revered destination for tourists visiting Berlin, was reported to be approximately 1 billion euros ($1.07 billion) by the German business daily Handelsblatt. However, Central Group has not disclosed the specific amount it paid for the property.
The acquisition unfolds against the backdrop of Signa Group’s challenges in navigating Europe’s real estate crisis, with creditors pursuing claims amounting to billions of euros. Signa’s insolvency, including its core entities Signa Prime and Signa Development, marks a significant development in the real estate landscape, given its founder Rene Benko’s prominent position in the industry.
About Thailand’s Central Group
Thailand’s Central Group stands as a powerhouse in the retail industry, boasting a diverse portfolio that spans from department stores and shopping malls to hotels and restaurants. With a rich history dating back to 1927, Central Group has steadily expanded its presence both domestically and internationally, solidifying its reputation as a leader in the Asian retail market. Renowned for its innovative approach to retail and commitment to delivering exceptional customer experiences, Central Group has become synonymous with luxury, quality, and convenience.
About KaDeWe
KaDeWe, short for Kaufhaus des Westens, is a prestigious department store located in the heart of Berlin, Germany. Established in 1907, KaDeWe has earned a revered status as one of Europe’s largest and most iconic luxury shopping destinations. Boasting a vast array of high-end brands and exclusive boutiques, KaDeWe attracts discerning shoppers from around the globe seeking unparalleled luxury and sophistication. Its rich heritage, coupled with its unparalleled selection of goods and services, has cemented KaDeWe’s position as a symbol of elegance and opulence in the world of luxury retail.
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